A recent online survey of 4,800+ people found that more than 80% of respondents were furious that the RBA’s accommodative monetary policy has not been passed on by banks to credit card users.

Since September 2008, the RBA has cut the cash rate by four percentage points, from 7.0% to the current 3.0%. However, this easing of rates was not passed on by the Big Four banks to customers’ credit cards, many of which remain at 19% or even higher. Credit card debt in Australia has hit an all-time high of AU$45.4 billion in the first quarter of 2009, and some cardholders are finding it difficult to pay down their balances.

Other survey findings include:
•    More than half of respondents called for the government to create a “people’s bank” to compete with the Big Four;
•    Most people, when looking for a credit card, apply to their current bank and only 6% of respondents research options online; and
•    Half of respondents pay their credit card bill in full every month. According to a recent survey by the Melbourne Institute, only 16% of Australian credit card users rarely or never pay off their entire balance.

Sources: Bigpond News, RBA